According to the Marxist theory superprofit is the surplus profit above average profit. The economic literature describes it as a surplus profit that was gained above capital gains in a perfect competition. It's nature is temporary since it is the result of special circumstances. Others think that the term is nonsensical since a capitalist always pursues as much profit as possible.

Maximizing profit, obtaining superprofit is the goal
of a capitalist market economy. Superprofit is the defining motivation of all
business activity.

Interest rate
as a base cost for capita is the initial component of profit. Globalization has increased liquidity and relative
abundance that revalued capita. Official interest rates in developed countries
were around 2-4% in the last decade, occasionally they were approaching zero.
Real interest rates have rarely exceeded inflation rates. The options to acquire
capita have mostly become favorable and globalizing capita markets played a
major role. Simple capita has become easy
and cheap to acquire.

The situation is different with quality, enterprising capita. Enterprising capita which owns
innovation and development capacity and which is able to optimize resources,
manage effectively and to acquire and keep markets. Apart from modern
globalization the major partners in this are transnational corporations. This capita bears special abilities,
and yields over average.

The main creators and beneficiaries of superprofit in today’s
global market are transnational corporations. They are not necessarily large
but can be small or medium corporations (transnational networks). A
transnational corporation is the product and user of modern globalization, a
modern producer and manager organization which is able to maximally utilize
global production organization and optimization and the advantages of aquiring
a market.

The increase of superprofits can be traced to many factors. a)
Globalization
makes utilizing comparative advantages
broadly. In the last few decades we could witness the strong liberalization
of the world trade which had been fully realized in certain regional
integrations. The process has abolished significant obstacles in utilizing comparative
advantages. b)
Superprofit could
be considered the benefit of innovation
(which can be lead back to new techniques and products) which as we know it are
accompanied by a high but risky yield parallel to technical revolutions and
globalization. c)
The source of
superprofit could be the optimal
allocation of resources, better efficiency and better management. Some
parts of globalization profit could be viewed as dynamic comparative profit
because quick innovations and technical development create the possibility of
huge profit if they are done in a country that has lower wages and costs.
Profits that come from the global allocation of resources and optimization are
especially importantt as global
management profit. This profit could be substantial. d)
Additional incomes that were built in based on some other factor (like land and mine
incomes or patent-innovation income)e)
Monopolistic profit usually based on the abuse of the producer's technical or market
advantage. Monopoly profit is the redistribution of income, it's nothing more
than the withdrawal of the income of corporations operating legally. Suboptimal
fund allocation and management, the corruption of welfare. In the current world
economy transnational corporations dominate certain market structures in an
oligopolistic nature and this can provide monopoly profit.In a closed
market or countries with a protectionist economic policy the situation is
different. The basis of monopolprofit this time is the protectionist policy of
the particular country which hurts efficiency and leads to a loss to welfare.f) Superprofit can come from speculation. Speculation undoubtedly has an important role in
regulating and monitoring the economy and correcting an erroneous economic
policy. Limiting speculation can easily lead to the impairment of freedom of
enterprise.

The situation is different of course if
the bases of speculation is the violation of the law (fraud, stealing,
embezzlement) or is possible through the loopholes of the law. With
globalization and in the last decades the related liberalization and deregulation
the possibilities of speculation have increased dramatically. As the financial
crisis has shown us the risk of criminal speculation has grown and with the
lack of regulation speculation can lead into a major crisis. Having regard to
inequality these factors have a particularly huge role in the hostility towards
globalization.

Superprofit coming from comparative
advantages, technical innovation and based on a more efficient management like
enterprising profit or performance based
income contribute to public welfare, they are unquestionably justified. Any
kind of discriminative restrictions (i.e. extra taxation) is not just
undesirable but can become harmful. In many respects preferential treatment
(i.e. incentive taxes to help innovation) is recommended.

Although additional incomes stand close
to monopolistic profit however they are legal parts of the creation of income.
The base of additional income could be the quicker and favorable return of a
large-scale reconstruction investment. This is what happened in some sectors (bank,
energy or infrastructure) of transforming countries. Later on without
competition and regulation these could transform into monopoly profit.

However market and other monopolies are
not desirable by society and are regarded as illicit or illegal. Serious problems can
arise of monopolization and speculation because there is a wide grey zone
between legal and illegal speculation. Hidden and informal monopolies have a
wide variety which are usually intertwined with politics and can be the source
of abuses that are hard to identify.

In developed democratic countries
abusing monopoly position is regulated by rigorous competition policies. This
has arose seriously about the European common market. The conditions of
competitive market was already regulated by the Treaty of Rome, the treaty
banned for example „directly or indirectly fix purchase or selling prices or
any other trading conditions” or „share
markets or sources of supply” (article 85). To enforce regulation fees and
penalty fees can be issued (article 87).
With the unified market and the
validation of the four principles of liberty competitive market has been
valorized. The Treaty of Lisbon has endeavored to answer questions such as:

The protection and
improvement of efficient competition in the domestic market

Protecting the
unified market from attitudes restricting competition of the member states
and corporations

Regulations
about states: public sector, regulation of state subsidies, preventing
state owned enterprises from gaining unfair advantage, eliminating the
distortion of the competition from the economical engagement of states

WTO and OECD have similar authority, actions against discrimination
(WTO) or regulating investments and profit transfers (OECD)
Discriminating monopolprofit in superprofit has a very
importantt practical context besides academical discussions. We must act
decisively against the pursuit of monopolies or illegal speculation. Reducing
monopolprofit (domestic and foreign) is not just a national interest but an
international duty.

Dr.
Tibor Palánkai

economist,
university professor, academic

(Hungary,
March 1st, 1938) Award winning Hungarian economist, university professor,
member of the Hungarian Science Academy. Renowned researcher of European
integration and international division of labour. Deputy rector of Karl Marx
Econonim University between 1977 and 1983, rector of Budapest Economic
University (successor of Karl Marx University) between 1997 and 2000)